Concerns that iPhone 13 production targets won't be met due to global chip shortage Apple drops shares

According to Bloomberg’s report, Apple was aiming to produce 90 million iPhones in the last quarter of 2021. But sources speaking to the magazine stated that the company had informed its partners that “total production could decrease to 10 million”.

Following the news, Apple’s shares fell by 1.2%.

Shares of Broadcom and Texas Instruments, manufacturing companies that struggled to deliver enough chips to Apple on time, also fell 1%, sources said.

Apple launched the iPhone 13 models in September. Pre-orders received on September 17, deliveries began on September 24.

GLOBAL CHIP ISSUE

Numerous industries require computer chips for their products. Semiconductor device manufacturers have also been working around the clock to meet demand.

Smartphone manufacturers like Apple are among the world’s largest chip customers. The automobile industry and companies that produce computer game consoles are among the sectors that suffer from chip shortages, like Apple.

Apple’s CEO, Tim Cook, warned in July that investments in semiconductor device manufacturing could affect iPhone and iPad sales.

Investment firm Wedbush estimated that Apple may experience more than 5 million iPhone 13 shortfalls during the holiday period, when shopping accelerates.

Wedbush analysts Daniel Ives and John Katsingris said the chip shortage is “not a concern” and they expect the smartphones to be ready for distribution in early 2022.

Analysts said, “It is not a concern for us to take a step back and move 5-10 million device sales from the December quarter to the March quarter due to supply chain problems, but on the contrary, it shows that there is much more demand outside of Wall Street’s forecasts.”

Many analysts who share this view predict that sales of the new iPhone 13 models will be very high as consumers want to switch to 5G network.

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